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Banks' Marketing 'Aggressive'
Banks' marketing budgets are on the rise, according to a survey by WirthlinWorldwide for the American Bankers Association (ABA). Overall, banks increased marketing budgets by 5% over 2003, promoting products, services and their corporate brand.
According to The 2004 Bank Marketing Survey, total spending reached $9 billion in 2003, a 4.6% increase from $8.6 billion in 2002. 'Three years of solid, consistent budget growth indicates more than a trend', according to Brenda Marlin, Associate Director of the ABA Marketing Network. 'It demonstrates the desire of banks to remain aggressive with their marketing efforts'.
Seventy percent of banks introduced a new product or service in 2003. On average, 66.5% of marketing expenditure was aimed at consumers and 23.2% at the small business market.
Market segmentation is a boom activity with 85% of banks using it in 2003 compared to only half in 2001. Among the most popular segmentations for consumers are the customer's relationship with the bank, the age of the customer, income or net worth and geographic location, each used by more than 60% of those involved.
Competition from financial and non-financial institutions is considered to be the top challenge facing bank marketers. WirthlinWorldwide surveyed 178 banks between March and July 2004. More information is available at www.aba.com
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